"Gold fell... in Europe due to profit-taking, but it is likely to remain supported due to continued concerns about sovereign debt contagion and currency risk," broker GoldCore said. "Many retail investors remain wary of bubbles and we have seen some retail buyers taking profits in recent days," it added. "Sentiment remains mildly bullish but there is no sense of a frenzy, mania or panic buying."
The NZD/USD has continued to drop, from 0.71 0.72 last week to around 0.68 0.69 at present. This drop was primarily due to risk aversion in the currencies markets (again attributable to the Eurozone crisis). This means NZD$ rated gold has increased from NZD$1880 for a gold Kiwi on Friday, to currently around NZD$1930.
Interesting articles:
- Banks dump Greek debt on the ECB as eurozone flashes credit warnings – Evan Andrews Pritchard at the Telegraph talks about sales of Sovereign debt and how it may affect the ECB - Telegraph
- An interesting article from an Argentinean economist relating the Greek crisis to the Argentinean crash of 2001 Voltairenet
- Is Japan the next one to watch in the sovereign risk race? Seeking Alpha
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